July 2008 Net Worth Update
In a phrase: Unexpectedly crappy.
I am just shocked at how much my retirement accounts shrunk in July, despite a regular contribution to my 401k account. It’s a disaster and a half! I lost almost 4%, and that’s offset by the contribution. Oh well. I know most of it is a dip I took on BRKB. I knew I should waited till it was at the price I really wanted it, but I’m bad at timing the market and that goes against the philosophy which drives the company’s investments, so que sera sera. (Theoretically, any time is a good time to buy a value investment. After all, it should go up…As for the commenter earlier who said I should worry about Mr. Buffett’s health, I am aware of the problem, but something tells me Mr. Buffett does not do this alone and no, Mr. Munger’s health doesn’t bug me either.)
I have a new entry this month for non-retirement stock investments. It’s because of ESPP participation at work. I will be saving about $350 a month in cash, but reporting the value of the stock at the end of the month with each rise and fall. I am happy because this means I get some dividends per the ex-dividend date in a few days. Yay! (Ex-dividend date means you have to hold the stock by this date to get the dividend payout approximately a month later. Watch these dates carefully if you are thinking of buying a dividend yielding stock.)
I left the home mortgage untouched as I cannot figure out the exact number since statements will not arrive till later this month. (For some reason, I don’t check these accounts online and have never bothered to set it up. It’s good enough the way it is.)
The big thing is that I am actually making some progress on my credit cards. Not a lot, but some.
Gene wrote:
Minor quibble. Ex-dividend literally means “without dividend”. Instead of holding the stock *by* this date, you can say “have to hold the stock *before* this date”. You also have to allow for the trade to clear, which takes a few trading days, I think, but that’s getting pretty technical.
I agree with you on BRK-B. It’s a good company, and since you’re planning to hold it long term, I assume, you’ll do well in the future. I’m a long-term holder of BRK, and it’s a good all-weather stock. Pretty much all my US-based stocks have stunk this year, and Berkshire is no exception. I’m not happy about it, but I’m not panicking in the streets either.
Posted on 05-Aug-08 at 11:56 am | Permalink
mapgirl wrote:
Thanks Gene for the clarification on the ex-dividend date. I usually haven’t had a problem with trades clearing beforehand. Usually if I’ve executed the trade 2 days before the ex-div date, I’ve been ok.
Thanks for rubberstamping my BRKB thoughts. A lot of ppl really like to shoot down Mr. Buffett, but from all the things I’ve read, he is a down to earth guy with some solid values.
Posted on 05-Aug-08 at 12:10 pm | Permalink
SavingDiva wrote:
My retirement accounts increased by about $100 even though I added $460! It’s frustrating, but I keep telling myself that what goes down must go up….right?!
Posted on 06-Aug-08 at 9:03 am | Permalink
Grace wrote:
Mapgirl, I do hear you! Faithfully putting dollars into the 401(k) every month and watching the balance go lower is an exercise in mind over matter. My mind wants to know what the heck I’m doing, and I keep my fingers crossed that in ten years, it will matter! I’m jealous of all the years you have to make sure it all works out to the good.
Posted on 06-Aug-08 at 2:59 pm | Permalink
Andrew Stevens wrote:
Munger is even older than Buffett, so he’s almost certainly not going to succeed him. I’d bet it will be Ajit Jain who will succeed Buffett, and I have no doubt Jain would do just fine. My question is simply how much Berkshire is inflated by the “Buffett premium.” Maybe it’s nothing, maybe it’s something, I don’t have any idea. (There are analysts who believe that Berkshire is still under-valued and they may well be right.) It’s quite possible the stock will dip on his death or retirement only to recover very shortly thereafter. Who knows? If you’re betting on the fundamentals of Berkshire and not on Buffett’s reputation as a latter-day Midas, then that’s fine.
Posted on 06-Aug-08 at 10:22 pm | Permalink
Andrew Stevens wrote:
Oh, and by the by, in the previous thread, I was talking to Mrs. Micah who was talking about putting 10% of her net worth in Berkshire, not just owning one share.
Posted on 07-Aug-08 at 7:51 am | Permalink